A property was removed from a Special Flood Hazard Area through a Letter of Map Amendment (LOMA) after the borrower obtained the original loan. The borrower requests to cancel the flood insurance. What is the lender's obligation?
Correct Answer
D) Must obtain a new flood determination before allowing cancellation
When a property's flood zone designation changes, the lender must obtain a new standard flood hazard determination to verify the change before allowing cancellation of mandatory flood insurance coverage.
Why This Is the Correct Answer
When a property's flood zone designation changes, the lender must obtain a new standard flood hazard determination to verify the change before allowing cancellation of mandatory flood insurance coverage.
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A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
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Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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